Chris and Christina, both age 39, have two children: Steven, and Stephanie, 9. Both Chris and Christina
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Question:
They want to have enough insurance so that their children can finish university should either Chris or Christina dies.
The children will finish university in about 15 years.
Use a real rate of interest of 3%.
Chris makes $120,000 a year with take-home pay of $83,800 with an average tax rate of 27.4%.
Christina makes $115,000 a year with take-home pay of $81,000 with an average tax rate of 26.7%.
They have the same marginal tax rate of 37.0%.
They have insurance coverage at work that will pay them twice their gross annual salary if they die.
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
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